Jemena Gas Networks (JGN) (which owns the NSW gas distribution network) recently sought review of the access arrangement decision made by the Australian Energy Regulator (AER). On 30 June 2011, the Australian Competition Tribunal (Tribunal) made its determination and remitted one issue, mine subsidence expenditure, back to the AER to make its decision again. The issue is whether JGN’s monitoring costs associated with mine subsidence should be treated as capital expenditure or operating expenditure.
The AER has released its draft decision on the treatment of mine subsidence expenditure. The draft decision also addresses unrelated minor errors to the access arrangement and access arrangement information.
The draft decision and revised access arrangement and access arrangement information are available on the AER’s website.
Interested parties are invited to make written submissions on this draft decision by 26 August 2011.
Submissions can be sent electronically to AERinquiry
aer [dot] gov [dot] au (AERinquiry[at]aer[dot]gov[dot]au) with the subject title ‘JGN Gas Networks – mine subsidence expenditure’ and marked to the attention of John Bastick.
The AER intends to make its final decision by 30 September 2011.